Did You Extend Your Early-Bird Deadline Again?

Putting aside for a moment the symbolism associated with growth in the CEIR Index finally coming to an end after 25 quarters (all good things must pass), the fourth-quarter numbers for tradeshow performance indicate some of the phenomena I have seen with event organizers truly do represent a trend.
Here’s hoping it’s only a blip.
Certainly, over recent years we have all seen exhibitors signing up and attendees registering for events later and later.
It is a serious, sometimes frightening, problem that, I find, is not getting better. Either traditional early-bird programs no longer work, or potential exhibitors and attendees have learned that we will extend them or find some other way to give them discounts when they finally do sign on.
The evidence that this is more than just a here-and-there phenomenon is illustrated by the over-all decline in number of exhibitors (down 0.8 percent) and attendees (0.6 percent) in the fourth quarter of last year.
The reason this matters is also demonstrated in another number in the CEIR fourth-quarter index: a 1.8-percent decline in revenue. Cash flow is becoming an issue as event organizers work their way through event cycles as they always have (with bills coming due at the same time they always did) while the money to pay them comes in later and later.
The fact that net square footage was up in the fourth quarter (1.3 percent) could be because, in the face of exhibitors signing up later, organizers are giving them breaks in the form of additional space on the floor.
It is true that the economy seems to have solidified since the beginning of the year. While some of us remain suspicious about any “Trump bump” explanation to the rise of the stock market, other more substantial measures – GDP, low unemployment, steady inflation rates – indicate the economy is on firmer ground than it has been in 10 years.
If the 2017 first-quarter CEIR Index turns around, we’ll know that’s the case.
If it doesn’t, we must accept that giving away space on the showfloor and extending early-bird deadlines are not going to be enough to salvage our upcoming events. A more thoughtful remedy will be required for a deeper dilemma.
Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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Emerald Expositions’ decision to move the Outdoor Retailer events out of Salt Lake City, accompanied almost simultaneously by a similar decision by the organizers of the North American Handmade Bicycle Show, because of the Utah state governor’s environmental politics seems a bit too convenient.

It reminds me of the commercials earlier this week during the Academy Awards by companies like Revlon, General Motors and Cadillac trying to suggest they share the same social justice values as their customers, when the fact is they are trying their best to sell their products.

The reality is that Outdoor Retailer’s organizers have wanted to move out of the Salt Palace Convention Center to a city with a venue large enough to accommodate a fast-growing show for 20 years. It’s been hampered by the fact that Outdoor Retailer’s attendees and exhibitors simply like Salt Lake and Utah. The convention center and local authorities called its bluff about 10 years ago with a venue expansion, primarily to accommodate Outdoor Retailer.

The expansion, a decade along, still isn’t enough to accommodate the show. Good for Emerald Expositions! It’s built a successful event. But its motives in justifying a move out of Salt Lake are a little transparent.

The company made it clear not long ago it was looking at other cities for the show, even before it announced that Gov. Gary Herbert’s efforts to limit federal protection of the Bears Ear National Monument (please tell me you’ve heard of it) was their line in the sand.

The draconian measures being taken by the Trump administration that are contrary to the values many of us share are bad enough.  Now companies are taking advantage of the 1984-like atmosphere we are in to justify business decisions they know will be unpopular with their customers.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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Is Your Show Transactional or Transformational?

In a recent CEIR Blog post, Robert Hughes noted that, after interviewing hundreds of exhibitors, he found that more than 90 percent of them thought the general contractor owned the tradeshow they were exhibiting in.

What is wrong with this picture?

The evidence for this revelation is clear: The biggest check an exhibitor writes is to the general contractor, not the show manager. The general contractors often represent the only human beings exhibitors meet, the ones they know to go to if they have problems.

Apparently, most exhibitors only talk to show management when they’re booking their space – and who among us has not made preselling the next year’s show our top onsite goal?

This may be efficient on the part of the show manager, but it’s no way to grow an event. It’s no way to worm your way into the heart of a community, which is exactly what events must do in the future if they are going to remain competitive with digital marketing vehicles.

The successful relationship between a show manager and an exhibitor (or an attendee, for that matter) cannot be transactional. It cannot simply be the exchange of something perceived to be of value, money in exchange for a booth in the exhibit hall.

A successful relationship between an event and its participants must be transformational. It must be more than the hackneyed “place where buyers meet sellers.” A transformational event is one that puts itself at the center of an industry’s community, the place where that community comes together from time to time to meet itself.

You certainly don’t want participants calling it the “contractor’s show,” or even the “show manager’s show.”

You want them to say, “This is our show.”

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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Is E3’s New Attendance Policy Right for Your Show?

Last week’s news that E3, the Electronic Entertainment Expo, would open wide its doors this year to any gamer who can afford a ticket is startling to somebody who has watched the video game show over the last 12 or 14 years.

A decade or so ago, E3 was one of the most highly restricted tradeshows in the industry, keeping a close watch to make sure only those with tight links to the electronic gaming industry got inside the Los Angeles Convention Center. Even then, I saw plenty of people absorbed in games on the showfloor who I didn’t imagine were old enough to be involved with any industry.

According to show organizers, last year when E3 still set a high bar for access to the showfloor, 20,000 people participated in a companion E3 Live outside the convention center and 50,000 more watched via live streaming or social media.

The explanation for the changes over time is simple: Distribution patterns in the gaming industry have changed. Gamers no longer go to a brick-and-mortar store to buy a product. They primarily download them to devices.

They also learn about new games via their devices as well, with the help of bloggers and sophisticated marketing campaigns that incorporate social media. An exhibitor’s target audience is not a retailer attendee, but the end user.

Certainly, organizers of events serving industries other than electronic gaming would say, “But that’s not us. That’s not how our industry works.”

Still, I defy any show organizer to say the industry they serve hasn’t changed its relationships with its customers over the last 10 years or so.

How have the relationships between your exhibitors and their customers changed? And what are you doing to make sure you give your exhibitors and sponsors the greatest access possible to their customers?

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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4 Hacks Donald Trump Has for the Event Organizer

trump-imageClosing in on a month after the election, I thought by now half of us would have gone back to making their own pesto, collecting butterflies and sitting alone in a dark room listening to “Pagliacci,” while the other half would have returned to their hootenannies, bearing profane messages on their T-shirts and racing their RVs.

But, alas, election fever isn’t over quite yet. However, the result is in: Like it or not, Donald Trump won, and he did it in the most untraditional of ways.

What means did he use that event organizers can hack?

First, they can abandon their faith in traditional communication channels and find the most direct way to reach potential attendees. Throughout the election, pundits declared there was no way Trump could compete in this or that state without buying more television air time.

Instead, he famously took to Twitter and put on daily over-the-edge performances in locations that didn’t seem to make sense politically. Yet his message resonated with a certain voter in a way that Hillary Clinton’s didn’t.

Is it time for you to drop those tired e-mail and direct mail campaigns and find a channel to communicate directly with your audience?

Second, he worried less about “getting out the vote” on Election Day and more about creating a brand that somebody who might potentially vote for him could identify with.

It’s a scary proposition but, given the limited resources you have available, are you still better of fretting about where your registration numbers are compared to last year? Or would you be smarter to focus more on simply getting your message out to everybody who might be intrigued?

Third, about the nonstop questionable “facts” Trump blurted out: Even though much of what he said could not get past the media’s fact checkers, enough voters in the right states didn’t care. Post-election analysts have it right. Media watchers tried to take him literally, but not seriously. Exactly the opposite with his voters. They cared less about the details and more about Trump’s underlying message to them.

Do you spend your time telling potential attendees how your event will help their businesses and their careers? Or are you busy making sure they know what time the opening reception starts?

Finally, Trump reached those on the margins, people who in many cases had not voted in years, and converted them into loyal brand followers.

Does your marketing target those who attended your event last year? Or are you looking for a way to reach those who don’t even know about you yet, but who could benefit if they did? And how do you reach them?

Michael Hart is a business consultant and writer who focuses on the events industry. He will participate in a webinar Dec. 16 entitled “Keep Your Attendees from Cheating on You.” Hart can be reached at michaelhart@michaelgenehart.com.

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Assume Nothing About the Global Events Industry

shanghai-tradeshow-imagdeI certainly expected to hear some opposing voices in response to my Oct. 19 post remarking that forces at play in the world are likely to cause at least a stutter for the global exhibitions industry.

Some of those who wrote quite reasonable responses not only have every right to object to my view, but almost a responsibility to signal to their clients, “Don’t worry, everything’s fine.”

However, even those of us who live within the cocoon of American culture cannot ignore the reality that, all over the world, nationalism is on the rise and free trade has become one of its adherents’ easiest targets. We see it here as the U.S. presidential election campaign staggers to an end.

So, those who are most entrenched in the international exhibitions industry, as they gather next week for the UFI Global Congress in Shanghai, can’t take much comfort in the recently released American Express Global Meetings and Events Forecast citing “political and economic uncertainty coupled with safety concerns in some countries.” The report from one company that has something to lose as a result admits, “we are seeing some hesitancy in our industry.”

The report, though, goes beyond the current international political and economic climate to cite three factors that could have a longer, more serious impact on the global meetings industry:

  • Hotel consolidation
  • Security and safety concerns
  • Confusion about the proliferation of event technology

All of which the beleaguered international event organizer has little or no control over.

There are a couple of things you can control, like that growing proliferation of technology. Organizers are starting to take advantage of data accumulation and analysis tools to better identify the needs of potential attendees and then share that information with exhibitors.

There is no reason to assume traditional marketplaces will remain static as the forces American Express suggests come into play. Instead, you can probably expect them to disrupt the conventional patterns of buyer-seller interactions. However, armed with real information, regardless of where you are, you can communicate the value of your event and the urgency with which potential attendees and exhibitors should approach it.

Assume nothing.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhrt3@gmail.com. Hart will moderate a webinar Nov. 30 for association executives entitled, “4 Easy Ways to Generate Non-Dues Revenue.”

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Why Association Show Organizers Are So Frustrated

cropped-OTC-image.pngI spoke this week to the organizer of one association show who knows why his show is declining in revenue, attendance and significance to its industry. He knows why a for-profit upstart could come in and steal whatever enthusiasm is left in his industry for an event – and there’s nothing he can do about it.

Many association managers today find themselves stuck between the proverbial stone and a hard place. They recognize the realities of the events industry today. They know that overall association membership is declining because its relevance to members is dwindling.

They understand their faithful audiences have many more ways to connect with potential partners and learn what they need to know to do their jobs better. They also understand how more nimble players can swoop in and launch a competing “pop-up,” worrying little about legacy issues and more about profits.

That’s their stone. Their hard place is a board of directors that doesn’t get it, the board that’s a legacy itself and doesn’t understand why attendance at the show and revenue are declining – when, from their point of view, nothing else has changed.

We all know how hard it can be to tell a boss he or she doesn’t know how much they don’t know.

Start this way: Ask your board to review its event goals. And don’t let them say, “That’s your problem.”

Is their primary goal to make money with the annual show? Is their No. 1 priority to get as many members there as possible? Do they want to use the annual event as a vehicle to deliver messages to a larger audience about the industry?

Is their best answer, “Because the bylaws say we have to have to”? (If it is their answer, you’re really in trouble.)

To a certain extent, it doesn’t matter what their answer is, as long as it gives you an opportunity to explain why you’re not accomplishing their goal now – and what you’ll have to change to do so.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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Is Digital Still the Biggest Threat to the Old-Fashioned Trade Show?

facebook-imageYou event organizers out there, tell me you didn’t gloat a little when you say the news that Facebook had overestimated the time people looked at video ads by as much as 80 percent.

Tell me you didn’t send a link of that story to your anchor exhibitors who told you they were cutting back on your show to devote more of their marketing budget to digital because they could MEASURE THE RESULTS!

When Grant Leech, vice president of brand management for U.S. Cellular talked to the Wall Street Journal, he asked rhetorically, “Are we getting real value for what we are buying?”

Which is exactly what your customers are asking you, right? Remember ROI?

But don’t get too giddy too fast. Digital marketing is a $149 billion business and is not going anywhere.

This, however, is evidence there are chinks in its armor and room for you – if you can demonstrate that you can deliver leads in a way digital can’t.

The lack of promised data on results is what has marketers upset about digital. That means to compete you need to make sure you can provide that data to your customers that tells them your event can deliver the buyers they’re looking for.

Get busy making the case – with facts and figures – that you have what your exhibitors are looking for.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

Associations Look Their Event Gift Horses in the Mouth

association-showsGenerating non-dues revenue is quickly becoming a problem for association executives. According to Bob James in his blog post last week, 54 percent of association executives said that in Naylor’s 2016 Association Adviser Communications Benchmarking Report. The killer is that same figure was only 11 percent a year ago.

Dig a little deeper into the report and you come up with some even more interesting findings:

90 percent of association executives believe events are their best channel of communication with both members and non-members. However, they also report that only one out of five members are repeat attendees at their annual events.

And, they admit, they’re not really trying too hard to turn that around either. Fifty-seven percent of association executives said they need to do a better job of “customizing” messages they send to both members and non-members and nearly half (48 percent) said they take a one-size-fits-all approach when it comes to customizing event sponsorship packages.

It’s becoming clearer every day that associations and their events could easily become tomorrow’s basket cases. Lulled into believing their events would pay the bills while association executives ran them on autopilot, they have been slower to heed the call for change than their for-profit colleagues.

Bob’s suggestion in his post is that associations work a little harder to diversify their revenue streams (e.g., rent membership lists, sell sponsorships to nonendemic sponsors, etc.) – and that might help in the short term.

In the long term, they’ve got to do something about that statistic that indicates only one out of five of this year’s annual meeting attendees will be back next year. If an association can’t even once a year supply its members with a venue where they can do business and learn about the industry that represents them, what are they there for?

The strategy should be to not look further afield, but to dig deeper – deep enough to identify what members want and give it to them immediately.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

 

Remember the Once Mighty Offshore Technology Conference?

OTC imageAccording to CEIR’s latest quarterly report, the tradeshow industry’s recent sluggish growth rates can be tied to volatility in the larger economy.

Most of the time, I would take a jaundiced view of such a statement and suggest that it’s a lame gesture to find somebody else to blame bad news on. This time, however, it sounds right.

Most metrics and sectors in the CEIR second-quarter report are up, if not as much as we’ve come to expect. Two declines stand out, they’re probably connected, and they point to how vulnerable the events industry can be to external forces.

First, tradeshow attendance is down a bit, 0.2. percent. However, in the raw materials and science sector – aka the oil industry, among others – attendance was down 20.4 percent. In fact, if oil industry shows had just been able to hold their ground and maintain the same attendance as last year, the overall attendance metric would have been up 2.4 percent! The combined metrics for the raw materials and science sector point to a 9.2-percent decline over the same quarter last year.

Remember a few years ago when you’d go to an industry event and the organizers of oil business events were the stars of the show? How the mighty have fallen.

Look at numbers for the annual Offshore Technology Conference (OTC), year in and year out the largest oil industry show. In terms of exhibit sales, they’re not doing so bad yet, even as slumping energy prices have walloped their industry. The number of exhibiting companies has held steady over the last three years and square footage only fell from around 700,000 net square feet in 2015 to 672,000 net square feet this year.

But look at attendance: 108,300 in 2014, 94,700 in 2015 and 68,000 this year!

If the seemingly indefatigable events industry has an Achilles’ heel, it’s attendance. It gets even worse for association shows like OTC, owned by the Society of Petroleum Engineers. Associations aren’t just worried about event attendance; many have problems even holding on to their members.

I know we like to blame millennials for the decline in association participation and whine, “They’re just not joiners.” But it’s more serious than that.

Associations, stuck with a mindset that what worked in the past is just fine for now, are finding it hard to adjust to a new environment where attendee-members expect more than a noisy exhibit hall and a cocktail reception out of their annual event. They want to look back at the three days they invested in and literally count the number of new leads they got, the number of new potential partners they lined up.

And if they can’t do that, not only will they think twice about registering for next year’s show, they won’t even send a check for their association dues when the bill comes at the end of the year.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.